Institutional Investors

Investors combating asset price volatility, bfinance finds

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Consulting firm bfinance has found that investors view asset price volatility as a key risk for their funds this year, following a survey of 82 global institutional investors representing $300 billion of assets.

Allocators are interested in further diversification by asset class and are even considering ‘smart beta’ thematic index solutions to reduce risk. Bfinance predicts continuing diversification to credit, property and alternatives, including hedge funds and absolute returns strategies predominantly at the expense of cash.

Hedge funds are expected to see a net increase in allocations of 16%, while absolute return strategies will see a net increase